Purchasing at Mc Master Purchasing Resources 2011 1

Purchasing at Mc. Master Purchasing Resources 2011 1

Topics: Purchasing Resources Overview New Legislative Requirements Current Public Procurement Environment Acquiring Goods & Services Sole/Single Sourcing Request for Proposals (RFP’s) Purchasing Requisition Customs & Traffic 2

“Purchasing Resources” Assistant Vice-President (Administration) Financial Services Accounts Payable Purchasing Resources Travel Customs & Traffic Purchasing Services Treasury Operations Mail Services Stores ABB & HSc 3

Purchasing Resources www. mcmaster. ca/bms/BMS_Purchasing Resouces. htm Mission: Supply management through value-added services. 4

Founding Principles re Procurement • Agreement on Internal Trade (Chapter 5) • Ontario/Quebec Trade Agreement • Bill 122 – Procurement Directive • Ontario Gov’t Supply Chain Guidelines • Laws of Competitive Bidding 5

Funding Agencies CFI • Must follow institution’s purchasing policies • Must follow AIT • Must follow CFI Guidelines http: //www. innovation. ca/en/programs/cfi-policy-and-program-guide 6

Funding Agencies Tri-Council • Must follow institution’s purchasing policies • Must follow AIT • In accordance with Tri-Agencies’ Policies, Regulations and Guidelines v v v Eligibility Compliance Approval – Grantee or Delegate 7

How to Acquire Goods & Services 1. How much is the purchase? 2. Are approvals required beyond your unit? i. e. IT (CIO’s office), Research (Research/Finance) Note: Approvals are SIGNATURES 8

How to Acquire Goods & Services 3. Should the purchase be bundled with other purchases? 4. Must consider the full payment over the term of the contract i. e. 2 year engagement 5. Application forms the basis of the budget. Once funds received, purchasing policy must be followed. 9

How to Acquire Goods & Services Goods less than $2, 500 Item secured by end user via ü Systems Contract Supplier; e. g. Grand Toy ü Departmental Acquisition Card ü Invoice payable by Cheque Requisition 10

How to Acquire Goods & Services Goods > $2, 500 & < $10, 000 ü 1 quotation secured by end user üRequisition for purchase to be sent to Purchasing Services Goods > $10, 000 & < $50, 000 ü 3 (new April 1, 2011) quotations secured by Requisitioner or Purchasing Services üRequisition for purchase to be sent to Purchasing Services 11

How to Acquire Goods & Services Goods > $50, 000 ü Formal bidding required through Request for Proposal (RFP) Goods > $100, 000 ü Formal bidding required through Request for Proposal (RFP) ü Posted on MERX 12

Exception: Sole/Single Source Sole Source: Only supplier due to proprietary rights Single Source: Multiple suppliers available but rationale for single sourcing 13

Exception: Sole/Single Source Use: Sole/Single Source Certificate http: //www. mcmaster. ca/bms/forms/sole%20 source. pdf 1. Requester initiates completion of form at beginning of procurement cycle 2. Attach quotes, if applicable 3. Select reason for sole/single sourcing 4. Complete “rationale” supporting sole/single sourcing 5. Obtain approval 14

Exception: Sole/Single Source Prior Approval Required by: 1. 2. 3. 4. Requester Account Holder 1 Level Higher than Account Holder i. e. Chair Director of Purchasing Resources 15

Exception: Sole/Single Source Effective April 1, 2011 re Consultants “Consultant” means a person or entity that under an agreement, other than an employment agreement, under a fee-for-service arrangement, provides expert or strategic advice and related services for consideration and decision-making, usually in the form of a report. 16

Exception: Sole/Single Source “Contractor/Professional Service” is a person or entity retained under a fee-for-service arrangement, that is not an employment agreement, to perform specific tasks under a client’s direction for a limited period of time. 17

Exception: Sole/Single Source Effective April 1, 2011 re Consultants • All consulting services must be bid regardless of dollar value. • For non-competitive, in accordance with AIT exemptions only, approvals are: $0 -999, 999 >$999, 999 President Board of Governors 18

Terms and Conditions to Consider • • • Life cycle costing Consumables Sustainability Acceptance testing Warranty Training Post warranty maintenance costs Payment terms Payment tied to deliverables Delivery timeframe (work backwards from date needed) NOTE: Do not sign supplier’s quotations/proposals/agreements 19

Low Bid Low bid ≠ Award Best Value = Award (high score wins) 20

Request for Proposals (RFP) Standard Sections Section 1 – Purpose & Content (Some customization) Section 2 – Instruction to Bidders Section 3 – Evaluation & Award *** >$100, 000 – must add evaluation criteria Section 4 – Award Contract Section 7 – Purchase Order T’s & C’s Section 10 – Mailing Label 21

Evaluation Methodology >$100 k must have weighted criteria Example: • Total Acquisition Cost 40% • Technical Evaluation 19% • Ability to Deliver Services 19% • Bidder’s Methodology to assist Community Partners convert/transform to a different platform from current 10% • Sustainability Goals 7% • Ability to provide all groupings 5% 22

Request for Proposals (RFP) Customization Required Section 5 – Special Terms and Conditions Section 6 – Functional Requirements Section 8 – Request for Proposal CFI Submission Format Section 9 – Summary Proposal Form ***may add as many sections as needed in order to customize 23

Request for Proposals (RFP) Timing • Allow 2 weeks for review and finalization • MERX Posting – minimum 15 calendar days **** strongly recommend 3 weeks (15 business days) NEW April, 2011 – complex RFP’s – 30 days • Allow 2 -4 weeks for evaluation Total Elapsed Time: minimum 7 -8 weeks + delivery 24

Request for Proposals (RFP) • Suppliers must obtain RFP from MERX • Formal Closing to Purchasing Resources • Must be signed & received on time in Purchasing Services • All communication is routed through Purchasing Services • Conflict of interest must be followed • Evaluation must be provided to support award • Scoring of suppliers’ proposals must be in accordance with the RFP weighting criteria • Original proposals and purchase orders/contracts are kept in Purchasing Services 25

Request for Proposals (RFP) How can you help? • Provide supplier list • Provide functional specifications • Explain need for special terms and conditions • Point suppliers to Purchasing Services 26

Purchase Requisition required regardless of dollar value: Ø Perishables Ø Radioactive material Ø Purchases for Health Sciences Centre Ø P. O. requested by supplier Ø Purchases from non-Canadian suppliers 27

Purchase Requisition http: //www. mcmaster/ca/univsec/bylaws/Board. By-laws. pdf • • Attach approved Sole/Single Certificate with requisition when seeking approval Obtain approval to purchase based on “Execution of Instruments: - (By-Laws of the Board of Governors of Mc. Master University, Appendix E – RESOLUTION RESPECTING THE EXECUTION OF INSTRUMENTS ) • Research Finance approves all research purchases (pre approval >$2, 500) Note: Contracts must be signed by the same levels as the requisition 28

Responsibilities Customer ü Understands department/program’s operations and requirements ü Responsible for budget and planning; e. g. determines what equipment and services are needed, when and where ü Initiates the purchase in accordance with University policy ü Complete thorough evaluation in accordance with RFP ü Provides technical expertise Purchasing Services ü Responsible for understanding purchasing statutes, rules, policies, procedure and industry best practice ü Working with customer to facilitate purchases ü Support and advise on best resolution of procurement problems ü Must comply with all Provincial, Federal and funding agency requirements 29

Forms Available at: http: //www. mcmaster. ca/bms/BMS_Forms. htm 30

Customs and Traffic Ø Clearing and expediting of incoming and outgoing shipments Ø All U. S. and International orders (including on-line) must be purchased through Purchasing Services to ensure compliance with Customs rulings How can you help? Ø Respond promptly to queries from the Customs and Traffic department Ø Ship online using Fed. Ex Ship Manager 31

Commodities Major Construction/Custom Hardware & Software Angelo Di. Lettera, Supervisor x 21629 dilett@mcmaster. ca MRO/Desktop HW & SW Barb Christianson, Purchasing Office x 24587 christb@mcmaster. ca Office/Animal/Engineering Linda Leo, Purchasing Officer x 24678 leolin@mcmaster. ca Library/Leasing/Contracts Carol Fletcher, Purchasing Off/Admin X 24297 fletchc@mcmaster. ca Scientific/Medical/Hospitality Nina Gilners, Purchasing Officer x 22216 gilners@mcmaster. ca General Assistance Roxanne Headrick, Reception x 24413 headric@mcmaster. ca Gases/Appliances/Security/Apparel/Miscellaneous Sarah Nunes, Purchasing Assistant x 22217 nuness@mcmaster. ca 32

HELP! Accounts Payable: Telephone: General enquiries x 24333 Fax: 905 -572 -1015 Customs and Traffic: Telephone: x 24358 Fax: 905 -529 -0433 Mail Services: Telephone: x 24286 Fax; 905 -540 -1039 Purchasing Services: Telephone: General enquiries x 24413 Fax: 905 -572 -1015 33

HELP! Stores: ABB Stores: Telephone: Fax: x 24668 905 -522 -0554 Health Sciences Stores: Telephone: x 22337 Fax: 905 -572 -7506 Travel: Telephone: x 24520 Fax: 905 -572 -1015 34